CRU was engaged by a large aluminium producer looking to better understand the prospects for marketing recycled metal to consumer and automotive customers.
Rising societal and investor consciousness regarding the importance of environmental sustainability, has the potential to drive future materials choices. In this context, our client wished to understand the demand outlook for recycled aluminium demand across key end use sectors, particularly packaging and automotive applications.
CRU Consulting identified a series of fundamental trends and drivers affecting future materials choices. We found evidence of a major shift in attitudes towards ESG, with a particular emphasis on increased recyclability in the achievement of carbon reduction targets. However, the potential commercial opportunities are impeded by a range of technical barriers to higher recycling content in some applications, complexities associated with certification/ quality assurance, and limitations on the willingness of customers to part a premium for recycled content.
CRU Consulting conducted a range of structured interviews with procurement specialists, marketing specialists, investors as well as design/ process engineers to better understand material choices and substitution threats. We subsequently synthesised the results to identify key trends as well as points where consensus in the market was lacking. These insights were complemented by quantitative analysis of the potential market penetration of low carbon aluminium in key end uses such as electric vehicles.
CRU’s insight and research gave the client a full understanding of the demand landscape for recycled aluminium, allowing them to fine-tune their marketing strategy.